PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
102
37. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
Presented below are balances of accounts with related parties:
2014 2013
of of
Amount total assets
Amount total assets
a. Cash and cash equivalents Note 4 10,464
7.43 11,736
9.17 b. Other current financial assets Note 5
2,406 1.71
1,226 0.95
c. Trade receivables - net Note 6 746
0.53 900
0.70 d. Advances and prepaid expenses Note 8
Others 24
0.02 82
0.06
e. Advances and other non-current assets Note 12
Entity under common control BNI
12 0.02
52 0.04
Others 6
0.01 3
0.00
Total 18
0.03 55
0.04
2014 2013
of total of total
Amount liabilities
Amount liabilities
f. Trade payables Note 14
Entities under common control INTI
323 0.59
115 0.23
Kopegtel 55
0.10 82
0.16 Indosat
22 0.04
17 0.03
State-owned enterprises -
- 1
0.00 Sub-total
400 0.73
215 0.42
Entity under significant influence Yakes
46 0.08
43 0.09
Others 324
0.59 568
1.12
Total 770
1.40 826
1.63
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
103
37. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
2014 2013
of total of total
Amount liabilities
Amount liabilities
g. Accrued expenses Note 15
Majority stockholder The Government
16 0.03
17 0.04
Entity under common control State-owned banks
84 0.15
53 0.10
Total 100
0.18 70
0.14 h. Advances from customers and suppliers
Majority stockholder The Government
19 0.03
19 0.04
i. Short-term bank loans Note 17
Entities under common control BRI
57 0.10
50 0.09
BSM 15
0.03 14
0.03 BRI Syariah
- -
3 0.01
Total 72
0.13 67
0.13 j.
Two-step loans Note 19
Majority stockholder The Government
1,615 2.95
1,915 3.79
k. Long-term bank loans Note 21
Entities under common control BRI
4,357 7.96
4,043 8.00
BNI 2,975
5.43 2,351
4.65 Bank Mandiri
2,181 3.98
1,069 2.12
Total 9,513
17.37 7,463
14.77
c. Significant agreements with related parties
i. The Government The Company obtained two-step loans from the Government Note 19.
ii. Indosat The Company has an agreement with Indosat to provide international telecommunications
services to the public. The Company has also entered into an interconnection agreement between the Company’s
fixed line network Public Switched Telephone Network or “PSTN” and Indosat’s GSM mobile cellular telecommunications network in connection with the implementation of Indosat
Multimedia Mobile services and the settlement of related interconnection rights and obligations.
The Company also has an agreement with Indosat for the interconnection of Indosats GSM mobile cellular telecommunications network with the Companys PSTN, which enable each
party’s customers to make domestic calls between Indosat’s GSM mobile network and the Company’s fixed line network, as well as allowing Indosat’s mobile customers to access the
Company’s IDD service by dialing “007”.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
104
37. RELATED PARTY TRANSACTIONS continued c. Significant agreements with related parties continued
ii. Indosat continued The Company has been handling customer billings and collections for Indosat. Indosat is
gradually taking over the activities and performing its own direct billing and collection. The Company receives compensation from Indosat computed at 1 of the collections made by the
Company starting from January 1, 1995, as well as the billing process expenses which are fixed at a certain amount per record. On December 11, 2008, the Company and Indosat
agreed to implement IDD service charge tariff which already took into account the compensation for billing and collection. The agreement is valid and effective starting from
January to December 2012, and can be applied until a new agreement becomes available.
On December 28, 2006, the Company and Indosat signed amendments on the interconnection agreements for the fixed line networks local, SLJJ and international and mobile network for
the implementation of the cost-based tariff obligations under the MoCI Regulations No. 8Year 2006 Note 40. These amendments took effect on January 1, 2007.
Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers.
The Company provides leased lines to Indosat and subsidiaries, namely PT Indosat Mega Media and Lintasarta. The leased lines can be used by these companies for telephone,
telegraph, data, telex, facsimile or other telecommunication services. iii. Others
The Company has entered into agreements with associated companies, namely CSM, PSN and Gratika for the utilization of the Companys satellite transponders or frequency channels of
communication satellite and leased lines.
On April 1, 2013, Telkomsel had an agreement with PSN for the lease of PSN’s transmission link, which will be expired on March 31, 2016.
Koperasi Pegawai Telkomsel “Kisel” is a co-operative that was established by Telkomsel’s employees to engage in car rental services, printing and distribution of customer bills,
collection and other services principally for the benefit of Telkomsel. Telkomsel also has dealership agreements with Kisel for distribution of SIM cards and pulse reload vouchers.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
105
37. RELATED PARTY TRANSACTIONS continued
d. Key management personnel remuneration Key management personnels consists of the Boards of Commissioners and Directors of the
Company and its subsidiaries. The Group provides honorarium and facilities to support the operational duties of the Board of
Commissioners and short-term employment benefits in the form of salaries and facilities to support the operational duties of the Board of Directors. The total of such benefits is as follows:
2014 2013
of of
Amount total expenses
Amount total expenses
Board of Directors 563
0.92 354
0.62 Board of Commissioners
155 0.25
106 0.19
38. SEGMENT INFORMATION
Management manages the Companys business portfolios using the customer-centric approach, as part of the Company’s strategy to provide one-stop solution to customers.
The Group has four main operating segments, namely personal, home, corporate and others. The personal segment provides mobile cellular and fixed wireless telecommunications services to
individual customers. The home segment provides fixed wireline telecommunications services, pay TV, data and internet services to home customers. The corporate segment provides
telecommunications services, including interconnection, leased lines, satellite, VSAT, contact center, broadband access, information technology services, data and internet services to companies and
institutions. Operating segments that are not monitored separately by the Chief Operation Decision Maker are presented as Others, which provides building management services.
Management monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated
based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements.
However, the financing activities and income taxes are not separately monitored and are not allocated to operating segments.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
106
38. SEGMENT INFORMATION continued
Segment revenues and expenses include transactions between operating segments and are accounted at market prices.
2014 Total before
Total Corporate
Home Personal
Others elimination Elimination consolidated Segment results
Revenues External revenues
18,763 6,682
64,000 251
89,696 -
89,696 Inter-segment revenues
10,652 2,667
2,686 1,632
17,637 17,637
- Total segment revenues
29,415 9,349
66,686 1,883
107,333 17,637
89,696 Expenses
External expenses 16,014
5,407 37,243
1,655 60,319
- 60,319
Inter-segment expenses 6,561
3,487 7,526
63 17,637
17,637 -
Total segment expenses 22,575
8,894 44,769
1,718 77,956
17,637 60,319
Segment results 6,840
455 21,917
165 29,377
- 29,377
Other information
Segment assets 46,869
22,142 82,167
2,307 153,485
14,414 139,071
Asset held-for-sale -
- 57
- 57
- 57
Long-term investments 147
1,613 7
- 1,767
- 1,767
Total consolidated assets 140,895
Capital expenditures 7,312
3,529 13,200
620 24,661
- 24,661
Depreciation and amortization 2,699
1,495 12,071
61 16,326
- 16,326
Impairment of assets -
- 805
- 805
- 805
Provision for impairment of receivables 184
467 133
- 784
- 784
2013 Total before
Total Corporate
Home Personal
Others elimination Elimination consolidated Segment results
Revenues External revenues
17,041 6,669
59,028 229
82,967 -
82,967 Inter-segment revenues
8,549 2,794
2,358 909
14,610 14,610
- Total segment revenues
25,590 9,463
61,386 1,138
97,577 14,160
82,967 Expenses
External expenses 15,211
5,939 32,991
980 55,121
- 55,121
Inter-segment expenses 5,164
2,946 6,472
28 14,610
14,610 -
Total segment expenses 20,375
8,885 39,463
1,008 69,731
14,610 55,121
Segment results 5,215
578 21,923
130 27,846
- 27,846
Other information
Segment assets 39,718
18,992 75,604
1,571 135,885
8,343 127,542
Asset available for sale -
- 105
- 105
- 105
Long-term investments 182
101 21
- 304
- 304
Total consolidated assets 127,951
Capital expenditures 6,237
2,340 15,662
659 24,898
- 24,898
Depreciation and amortization 2,423
1,487 11,234
40 15,184
- 15,184
Impairment of assets -
- 596
- 596
- 596
Provision for impairment of receivables 994
390 202
3 1,589
- 1,589
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
107
38. SEGMENT INFORMATION continued
The Company predominantly generates revenue and profit within Indonesia. Revenue with respect to international interconnections and assets held by geographical location are disclosed in
Notes 26 and 1, respectively.
39. REVENUE-SHARING ARRANGEMENTS “RSA”
The Company has entered into separate agreements with several investors under RSA to develop fixed lines, public card-phone booths, data and internet network and related supporting
telecommunications facilities.
As of December 31, 2014, the Company has 1 RSA with an investor. The RSA are located in Denpasar, Mataram and Kupang, with concession periods of 148 months.
Under the RSA, the investors finance the costs incurred in developing the telecommunications facilities and the Company manages and operates the telecommunications facilities upon the
completion of the construction. Repairs and maintenance costs during RSA period are borne jointly by the Company and investors. The investors legally retain the rights to the property and equipment
constructed by them during the RSA periods. At the end of the RSA period, the investors transfer the ownership of the telecommunications facilities to the Company at a nominal price.
Generally, the revenues earned in the form of line installation charges, outgoing telephone pulses and monthly subscription charges are shared between the Company and investors based on certain
agreed amount andor ratio.
40. TELECOMMUNICATIONS SERVICE TARIFFS
Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating telecommunications network andor services are determined by providers based on the tariff type,
structure and with respect to the price cap formula set by the Government.
a. Fixed line telephone tariffs
The Government has issued a new adjustment tariff formula which is stipulated in the Decree No. 15PERM.KOMINFO42008 dated April 30, 2008 of the Ministry of Communication and
Information “MoCI” concerning “Mechanism to Determine Tariff of Basic Telephony Services Connected through Fixed Line Network”.
Under the Decree, tariff structure for basic telephony services connected through fixed line network consists of the following:
• Activation fee
• Monthly subscription charges
• Usage charges
• Additional facilities fee.
b. Mobile cellular telephone tariffs
On April 7, 2008, the MoCI issued Decree No. 09PERM.KOMINFO042008 regarding “Mechanism to Determine Tariff of Telecommunication Services Connected through Mobile
Cellular Network” which provides guidelines to determine cellular tariffs with a formula consisting of network element cost and retail services activity cost. This Decree replaced the previous
Decree No. 12PERM.KOMINFO022006.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
108
40. TELECOMMUNICATIONS SERVICE TARIFFS continued b. Mobile cellular telephone tariffs continued
Under MoCI Decree No. 09PERM.KOMINFO042008 dated April 7, 2008, the cellular tariffs of operating telecommunication services connected through mobile cellular network consist of the
following: •
Basic telephony services tariff •
Roaming tariff, andor •
Multimedia services tariff, with the following traffic structure:
• Activation fee
• Monthly subscription charges
• Usage charges
• Additional facilities fee.
c. Interconnection tariffs
The Indonesian Telecommunication Regulatory Body “ITRB”, in its letter No. 262BRTIXII2011 dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost
basis with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication provider operators.
Based on letter No.118KOMINFODJPPIPI.02.04012014 dated January 30, 2014 of the Director General of Post and Informatics, the Director General of Post and Informatics decided to
implement new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to evaluation on an annual basis. Pursuant to the Director General of Post and Informatics
letter, the Company and Telkomsel are required to submit the Reference Interconnection Offer “RIO” proposal to ITRB to be evaluated.
Subsequently, ITRB in its letters No. 60BRTIIII2014 dated March 10, 2014 and No. 125BRTIIV2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of
RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to the SMS interconnection tariff to Rp24 per SMS.
d. Network lease tariffs
Through MoCI Decree No. 03PERM.KOMINFO12007 dated January 26, 2007 concerning “Network Lease”, the Government regulated the form, type, tariff structure, and tariff formula for
services of network lease. Pursuant to the MoCI Decree, the Director General of Post and Telecommunication issued its Letter No. 115 Year 2008 dated March 24, 2008 which stated “The
Agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of
Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider”, in conformity with the Company’s proposal.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
109
40. TELECOMMUNICATIONS SERVICE TARIFFS continued e. Tariff for other services
The tariffs for satellite lease, telephony services, and other multimedia are determined by the service provider by taking into account the expenditures and market price. The Government only
determines the tariff formula for basic telephony services. There is no stipulation for the tariff of other services.
41. SIGNIFICANT COMMITMENTS AND AGREEMENTS
a. Capital expenditures As of December 31, 2014, capital expenditures committed under the contractual arrangements,
principally relating to procurement and installation of switching equipment, transmission equipment and cable network are as follows:
Amounts in foreign currencies
Equivalent Currencies
in millions in rupiah
Rupiah -
9,837 U.S. dollar
512 6,349
Euro 0.35
5 SGD
0.40 4
Total 16,195
The above balance includes the following significant agreements: i
The Company
Contracting parties Initial date of
agreement Significant provisions of the
agreement
The Company and PT Industri Telekomunikasi Indonesia
December 30, 2010 Procurement and installation agreement
for cooper wire access modernization through Trade InTrade Off method
The Company and PT Len Industri Persero March 29, 2012
Procurement and installation agreement for cooper wire access modernization
through Trade InTrade Off method The Company and PT Ketrosden Triasmitra-PT
Nautic Maritime Salvage Consortium August 30, 2012
Procurement and installation agreement for “Sistem Komunikasi Kabel Laut”
SKKL Luwuk-Tutuyan Cable System LTCS
The Company and Furukawa and Partners Consortium
November 14, 2012 Procurement and installation of Outside
Plant Fiber To The Home OSP FTTH DIVA Regional V and VII
The Company and JF DJAFA Consortium November 14, 2012
Procurement and installation agreement of OSP FTTH DIVA Regional II
The Company and ASN-PT Lintas Consortium May 6, 2013
Procurement and installation agreement of Sulawesi Maluku Papua Cable System
SMPCS project The Company and NEC Corp-PT NEC Indonesia
Consortium May 28, 2013
Procurement and installation of SMPCS package-2
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
110 41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
a. Capital expenditures continued i
The Company continued
Contracting parties Initial date of
agreement Significant provisions of the
agreement
The Company and PT Datacomm Diangraha June 26, 2013
Procurement and installation agreement for expansion and Maintenance Support
MS Service for Metro Ethernet Platform ALU
The Company and PT Lintas Teknologi Indonesia July 22, 2013
Procurement and installation agreement for expansion of DWDN platform ALU
The Company and PT Cisco Technologies Indonesia
November 14, 2013 The partnership for procurement and
installation agreement of WIFI CISCO The Company and PT NEC Indonesia
November 29, 2013 Procurement and installation agreement
for IP Radio Equipment for Backhaul Node-B Telkomsel Package-3 Platform
NEC The Company and PT Huawei Tech Investment
December 6, 2013 Procurement and installation agreement
for IP Radio Equipment for Backhaul Node-B Telkomsel Package-2 Platform
Huawei The Company and QNet Indonesia
July 22, 2014 Procurement and installation of SKKL
Broadband Network Division The Company and Thales Alenia Space France
July 14, 2014 Telkom-3 Substitution T3S Satellite
System
ii Telkomsel
Contracting parties Initial date of
agreement Significant provisions of the agreement
Telkomsel, PT Ericsson Indonesia, Ericsson AB, PT Nokia Siemens Networks, NSN Oy and Nokia
Siemens Network GmbH Co. KG April 17, 2008
The combined 2G and 3G CS Core Network Rollout Agreements
Telkomsel, PT Ericsson Indonesia and PT Nokia Siemens Networks
April 17, 2008 Technical Service Agreement TSA for
combined 2G and 3G CS Core Network
Telkomsel, PT Ericsson Indonesia, Ericsson AB, PT Nokia Siemens Networks, NSN Oy, Huawei
International Pte. Ltd., PT Huawei and PT ZTE Indonesia
March and June 2009
2G BSS and 3G UTRAN Rollout agreement for the provision of 2G GSM
BSS and 3G UMTS Radio Access Network
Telkomsel, PT Packet Systems Indonesia and PT Huawei
February 3, 2010 Maintenance
and procurement
of equipment and related service agreement
for Next Generation Convergence IP RAN Rollout and Technical Support
Telkomsel, PT Dimension Data Indonesia and PT Huawei
February 3, 2010 Maintenance
and procurement
of equipment and related service agreement
for Next Generation Convergence Core Transport Rollout and Technical Support
Telkomsel, Amdocs Software Solutions Limited Liability Company and PT Application Solutions
February 8, 2010 Online Charging System “OCS” and
Service Control Points “SCP” System Solution Development Agreement
Telkomsel and PT Application Solutions February 8, 2010
Technical Support Agreement to provide technical support services for the OCS
and SCP Telkomsel, Amdocs Software Solutions Limited
Liability Company and PT Application Solutions July 5, 2011
Development and Rollout agreement for Customer Relationship Management and
Contact Center solutions Telkomsel and PT Ericsson Indonesia
December 21, 2011 Development
and Rollout
Operating Support System “OSS” agreement
Telkomsel and Huawei International Pte. Ltd. and PT Huawei
July 17, 2012 CS Core System Rollout and CS Core
System Technical Support agreement
